MALAYSIA — In a significant move towards sustainable energy solutions, PETRONAS, ADNOC, and Storegga have signed a Joint Study and Development Agreement (JSDA) to evaluate carbon dioxide (CO2) storage capabilities in the Penyu basin, offshore Peninsular Malaysia.
The collaboration aims to assess saline aquifers for CO2 storage and explore the construction of carbon capture and storage (CCS) facilities in the region.
The agreement targets a minimum CO2 capture and storage capacity of five million tonnes per annum (mtpa) by 2030.
The comprehensive scope of the project includes:
- CO2 shipping and logistics study
- Geophysical and geomechanical modeling
- Reservoir simulation and containment research
- Exploration of advanced technologies, including artificial intelligence, to enhance storage capacity
Nora’in Md Salleh, CEO of PETRONAS CCS Solutions Sdn. Bhd. (PCCSS), emphasised the strategic significance of this partnership: “This agreement will potentially allow us to build our capability to develop and de-risk saline aquifers as carbon dioxide storage sites by leveraging our partners’ expertise and experience in other regions.”
The collaboration aligns with PETRONAS‘ goal of establishing Malaysia as a regional CCS hub for the Asia Pacific region, utilising saline aquifers for storage capacity.
This initiative supports Malaysia’s National Energy Transition Roadmap (NETR), which identifies CCS as one of six key energy transition levers.
The Malaysian government plans to introduce a standalone CCUS bill by the end of 2024, further emphasising the country’s commitment to sustainable energy solutions.
Hanan Balalaa, ADNOC Senior Vice President for New Energies, highlighted the importance of carbon capture in achieving their Net Zero by 2045 goal.
ADNOC aims for a carbon capture capacity of 10 mtpa by 2030, equivalent to emissions from two million internal combustion vehicles.
Tim Stedman, CEO of Storegga, described the partnership as an opportunity to develop a world-class CCS hub and drive large-scale industrial decarbonisation.
The JSDA’s activities are scheduled to commence later this year, marking a significant step towards establishing a regional CCS hub that will serve both domestic and international emitters.
This collaboration represents a concerted effort to address climate change and accelerate the transition to sustainable energy solutions in the Asia Pacific region.
